With public trust in UK companies and institutions stuck at record lows in the wake of the financial crisis, new research has shown that employee-owned business are deemed more reliable and principled than others.

Commissioned by the Employee Ownership Association (EOA) with support from Co-operative Development Scotland (CDS), the YouGov survey found 58 per cent of those questioned think employee-owned (EO) businesses are more trustworthy than non-EO businesses.

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A further 53 per cent said it would be better for the UK economy if there were more EO businesses.

The results follow findings from this year's Edelman Trust Barometer, which showed a drop in confidence in leaders across all of society “to do the right thing”. Levels of trust in business dropped to 33 per cent, down from “an already low mark”, Edelman observed.

The chief executive of the EOA, Deb Oxley, said the survey was a timely analysis given recent political focus on corporate governance and employee representation on boards.

“This latest YouGov survey of the employee-owned business sector is another indicator of this sector's importance to the long-term sustainability of the UK economy, adding to the large volume of data which evidences its contribution to business productivity, resilience and innovation,” Oxley said.

“At a time when the UK faces economic uncertainty, the opportunity for businesses that are driven by the collective effort and passion of their employee owners could not be any more relevant.”

Sarah Deas, director of CDS, added: “There has never been a better time to discuss the relevance of employee ownership and the benefits of this business model to both employers and employees. The characteristics of employee-owned businesses, such as profit sharing and personal development, also creates a working environment that resonates more with millennials.

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“In order to raise levels of trust in UK business and institutions, we must look to the success of this sector and consider the wider benefits to the economy if more businesses were to become employee-owned.”

Among the survey's other findings, 44 per cent said they would be more likely to apply for a job at an employee-owned business, and 41 per cent said they were more likely to buy products or services from an EO business.